- Crypto scams cost Americans $9.3B in 2024, as AI makes fraud more advanced and harder to detect.
- Older people lost more than $2.8B in 2024 after exposure to fake ATMs and apps.
- FBI stopped $285M in scams through early alerts and new actions with crypto firms.
In a shocking report, the Federal Bureau of Investigation (FBI) pointed out that Americans had lost nearly $9.3 billion to crypto scams in 2024. This fact reveals a sharp rise in cyber fraud targeting digital asset users. Further, it links to the broader expansion of crypto markets and the use of sophisticated methods by scammers. As fraud evolves with the growth of technology, regulators and industry leaders are now under pressure to establish robust protections. How will the industry respond to safeguard consumers against these escalating threats?
Scam Tactics Intensify Amid Crypto Growth
According to the FBI’s 2024 Internet Crime Report, cryptocurrency fraud losses spiked 66% from 2023, with investment scams being the most dangerous, stealing more than $6.5 billion. Many of these schemes are linked to organized crime groups that resort to sophisticated methods of deception, using AI-generated fake messages to appear as legitimate.
Source: FBI Report
In addition to financial losses, the report also highlighted a growing number of elderly victims. Individuals aged 60 and above lost a staggering $2.8 billion, with over $107M connected to scams involving cryptocurrency ATMs. These cases reveal how the senior citizens are being easy targets for tech-savvy scammers.
According to Chainalysis data, about $41 billion worth of illicit crypto volume occurred in 2024. About 25% of this total involved hacking, extortion, trafficking, or investment scams. These numbers illustrate a global increase in criminal engagement with digital assets, extending well beyond the United States.
Operation Level Up and Rising AI Threats
To counteract these threats, the FBI launched Operation Level Up in February 2024. The initiative, designed to stop cryptocurrency scams early, had prevented over $285 million in potential losses. This effort involved direct outreach to suspected victims and collaboration with exchanges to halt fraudulent transfers before completion.
However, the challenge continues to grow. Chainalysis forecasted that 2025 may witness an increase in fraud attempts. This prediction is based on the rising use of generative AI tools by bad actors, which allow scalable and automated scam operations, creating a wave of fraudulent content, that is more convincing and harder to detect.
Related: SEC Forms Cyber Unit to Fight Crypto Fraud and Digital Scams
Industry Faces Pressure to Act Decisively
The cryptocurrency sector is now under intense pressure to act fast. A clamor for more serious investor education programs and secure platform practices has intensified. And of course, there’s always encouragement for collaboration toward threat intelligence sharing and prepared collective defenses against criminal tactics.
Public awareness campaigns are essential in helping users recognize red flags and avoid bad actors. However, education alone is not enough, as robust, multi-layered security and proactive measures can prevent such rapid innovation in crypto and cybercrime. As crypto adoption grows, the industry’s commitment to protecting users must also increase or risk losing investor trust.
